Zuckerberg planning to cut Metaverse budget by up to 30% - report
By Michele Maatouk
Date: Thursday 04 Dec 2025
(Sharecast News) - Meta Platforms' Mark Zuckerberg is reportedly set to meaningfully cut resources for building the so-called metaverse, an effort that he once framed as the future of the company and the reason for changing its name from Facebook.
According to Bloomberg, which cited people familiar with the talks, executives are considering potential budget cuts as high as 30% for the metaverse group next year. This includes the virtual worlds product Meta Horizon Worlds and its Quest virtual reality unit.
Cuts that high would most likely include layoffs as early as January, according to the sources, though a final decision has not yet been made.
Bloomberg said the proposed metaverse cuts are part of the company's annual budget planning for 2026, which included a series of meetings at Zuckerberg's compound in Hawaii last month.
It was understood that Zuckerberg has asked Meta executives to look for 10% cuts across the board, which has been the standard request during similar budget cycles the past few years.
The metaverse group was asked to cut deeper this year given that Meta has not seen the level of industry-wide competition over the technology that it once expected, the sources told Bloomberg.
They added that the majority of the proposed cuts are likely to hit Meta's virtual reality group, which makes up the bulk of metaverse-related spend. Cuts would also target Horizon Worlds.
Danni Hewson, head of financial analysis at AJ Bell, said: "It's no surprise that Meta shares jumped on news the company is reining back on its 'metaverse' dreams. Unlike the obvious real-world allure of AI, the metaverse has always seemed a bit out there as an idea that could never quite be explained fully to investors (and one many believe should have been quietly ditched a long time ago).
"With so much cash going into AI, companies have been forced to demonstrate their ability to cut costs in other parts of the business to offset some of the mega spend.
"It could be that Mark Zuckerberg's vision will eventually confound us all and AI could be the tool that ultimately helps that vision become reality. But with investors so nervous about spending this move seems smart, if a little late in the day."
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